InfoBytes Blog
FDIC Announces New Regulatory Actions Against Florida-based Bank
On December 30, the FDIC announced new regulatory actions against a Florida-based bank. Along with the Florida Office of Financial Regulation, the FDIC issued a new Consent Order against the $121.5 million-asset bank, based on allegations that the bank had engaged in “unsafe or unsound” banking practices, or practices which constituted a violation of law or regulation in the following areas: (i) weakness in asset quality, (ii) capital adequacy, earnings, (iii) management effectiveness, (iv) liquidity, (v) sensitivity to market risk, and (vi) compliance with the Bank Secrecy Act (BSA).
Among other things, the Order notes that the bank currently falls short of FDIC requirements for qualifying as “well capitalized,” qualifying merely as “adequately capitalized,” and therefore must boost its capital levels or face continued restrictions on its operations. The Order also states that the bank—which consented to the Order without admitting or denying the charges—now has 120 days to meet its capital requirements and 60 days to submit a capital plan to both: (i) achieve and maintain the capital requirements; and (ii) provide for a contingency plan to sell or merge the bank.